Net income booms for Chart Industries
Chart Industries Inc, a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases, has reported results for the fourth quarter and year ended 31st December 2007 and revealed a net income increase of 91%.
Net sales for the fourth quarter of 2007 increased 26% to $182.7m from $144.4m in the fourth quarter of 2006, while for the year net sales rose 24% to $666.4m from $537.5m in 2006. Net income for the fourth quarter of 2007 was $16.4m at an increase of 91% compared with $8.6m, in the fourth quarter 2006. For the year, net income stood at $44.2m, or $1.61 per diluted share, compared with net income of $26.9m in 2006.
For 2007, pre-tax income and net income included $7.9m and $5.7m respectively, of non-cash stock-based compensation expense and offering expenses related to the secondary stock offering completed during the second quarter of 2007.
Sam Thomas, Chart's Chairman, President and Chief Executive Officer, reflected, “We were very pleased with our operating results in the fourth quarter, which was led by our Energy & Chemicals segment. We finished the year on a very strong note with fourth quarter orders of $233m and backlog of $475m, up 49% compared with the end of 2006. Order quotation activity in our Energy & Chemicals segment has been increasing significantly to reflect the global growth in the industrial gas market and ramp-up of clean coal technologies, including Coal to Liquids (CTL) and integrated gasification and combined cycle (IGCC) power projects.”
Looking ahead to future outlook, Thomas continued, “Overall, 2007 was another successful year for Chart as we continue to demonstrate our ability to navigate profitably through continued rapid growth. All of our business segments achieved strong operating performances, reflecting continued robust demand in our markets, most notably the liquefied natural gas (LNG) and natural gas segments of the hydrocarbon processing market, but also the global industrial gas market, which has been on an upswing.”
Fourth quarter gross profit improved $10.6m, or 25%, to $53.0m from $42.4m for the 2006 year. This gross profit improvement was driven primarily by volume increases and favourable project mix in the company's Energy & Chemicals segment